PIDX Supplier KPI Project Update PIDX Executive Update Dec 18th Daryl Fullerton, PIDX International

Transcription

1 PIDX Supplier KPI Project Update PIDX Executive Update Dec 18th 2013 Daryl Fullerton, PIDX International PIDX, Inc. 2012

2 1. Overview 2. Project Recent Wins (Nov Dec 2013) 3. KPI Dictionary Update 4. Status Update on Timeline Point Plan ( Next 6 Mths) 6. Marketing the Supplier KPI Project 7. Challenges 8. AOB Table of Contents PIDX, Inc. 2011

3 Supplier KPI Project Overview Overview The PIDX Supplier KPI Projects main focus is to develop a Supplier KPI Data Dictionary (Phase 1) followed by the development and automation of Supplier KPI data transfer between Suppliers and Oil & Gas Operators (Phase 2) beginning in late Phase 1 project objectives are to compile an Industry Data Dictionary for Standardization of KPI terminology and definitions, e.g. NPT, TRIR etc Focus: Upstream / Downstream Commenced: 2011 Participants : c80 Contact: Daryl Fullerton dfullerton@pidx.org Mike Washington michael.washington@conocophillips.com Key Drivers Why we Need Industry Wide KPI Definition Chaos between different Operator KPI Definitions and the Supply Chain Supplier Base Scorecard Overload Cost Savings Time = Money Better Data Accuracy Improved Data QA/QC Scorecard impact on working conditions. Wins when Implemented Standardization on KPI Terminology Industry Recognized and endorsed Supplier KPI Data Dictionary. Significantly better QPR s Cost savings for Service Companies More Accurate Data for Operators Standard for Supplier KPI Data Transfer PIDX, Inc. 2012

4 Industry Current State of SPM Many Operators have SPM Initiatives in operation or underway. Often Contract Awards for a new Supplier based on WOM or past performance but KPI Terminology / Definitions may differ. Big Problem Area Many KPI initiatives are Regionally Focused or Category Line Focused with no Global Company Wide KPI role up. Very few provide Visibility on KPIs on Real Time to Suppliers Often no way of telling whether A team or B team until things go wrong Likeness to Political Campaigns / Elections No way of facilitating regional Specific KPIs that Matter. Huge Drive to Standardise KPI terminology. Apples with Apples and Like with Like. Automated of KPI data gathering extremely low. Confidential 2013 PIDX 4

5 Project Recent Wins

6 Recent Wins for the Project (Nov Dec 2013) 1. BP on Board Project 2. IACCM interested in Joining Project 3. BP Submitted KPIs 4. Shell - Participation forms Submitted 5. Talks held with 8over8 about joining ( Contract Specific KPIs for Major Projects) 6. Chevron now have Nominated a dedicated representative 7. In talks with Glencore Xtrata about joining (they are one of the Worlds largest Mining & Exploration Cos) 8. In talks with Aramco about joining. 9. Interest from Genel Energy (Tony Hayward is CEO), Conversations had, Follow up Jan 2014 PIDX, Inc. 2011

7 Project Plan

8 Project Timeline KPI Dictionary (alfa version) KPI Dictionary (Beta version Segmentation) KPI Dictionary Standardized Version 1 Q Q KPI Selection (Critical few) KPI Definitions Standardized

9 Performance Areas (Level 1) Framework Agreed Level 1 HSE QUALITY SUPPLIER DELIVERY COST BEHAVIOUR 9 15/04/2014 Classification: Internal

10 Supplier KPI Data Dictionary Update (Dec 2013) Accomplishments to Date 1. Template for Data Collection Agreed Performance Areas Defined and Agreed. 3. Over 440 KPI s recieved and in progress of being added to Master Data Dictionary 4. KPI s Submitted by 15 Companies 5. Planning for Conversion of KPI Dictionary Spreadsheet to from Excel to Data Base underway. PIDX, Inc. 2011

11 KPIs to Standardize KPI Name KPI Definition Total Recordable Incident Rate (TRIR) = Recordable Cases * 200,000 / Hours Worked OSHA Severity Rate Lost Workday Case Incidence Rate OSHA Incidence Rate Actual Costs Vs Planned Cost Days NPC % OF ACTUAL COST Days per 10k NPT in % of operating time OSHA SR = (Lost Workdays + Restricted Workdays) * 200,000 / Hours Worked LWIR = Lost Workday Cases * 200,000 / Hours Worked (OSHA IR) = (Lost Workday Cases + Restricted Workday Cases) * 200,000 / Hours Worked (Actual Cost of Services/Actual Operating Time (days))/(planned Cost of Services/Planned Operating Time (days) ) (Total non productive Cost NPC/Actual Cost of Services)*100.0 (Total number of drilling days / Total feet drilled)*10,000 (Product Line Related Total Non-Productive Time NPT (days)/actual Operating Time (days))*100.0 Operating Efficiency % Operating Efficiency = (Operating Time-Agreed NPT)/Operating Time x 100 Days Away from Work Injury Freq. Stop Cards Issue Rate Recordable Injuries and Illnesses Frequency (Days Away From Work Injuries/Total Manhours)* Number of Stop Cards recorded for the supplier per 200,000 man hours (No. of Recordable Injury and Illnesses* )/No.of Man-hours worked % Objectives Met (number of objectives met / number of objectives defined) * 100 On Time Delivery Rate On Time Delivery in Full to Specification / Total Deliveries Received Right First Time Invoicing Rate Invoices received Right First Time / Total Invoices Received *100 Days Sales Outstanding Ratio Days Payment Outstanding Ratio DSO ratio = accounts receivable / (annual sales / 365 days) DPO ratio = accounts payable / (annual sales / 365 days)

12 Submitted V Standardised Goal = Feb 2014 Publish the 21 or so KPIs for Industry Feedback

13 Participation Update

14 Workgroup Meeting Participation / Expressions of Interest Operators Apache BP Cairn Energy* Chevron ConocoPhillips EP Energy Genel Kinder Morgan Murphy Oil Marathon Noble Energy Nexen Penn West Exploration RWE Sasol Shell Statoil Talisman Tullow Oil Wintershal Service Companies / Suppliers Aker Solutions Amec Baker Hughes CBI Cameron GE Oil & Gas Genel Halliburton Oceaneering Pacific Drilling * Schlumberger Siemens Tetra Technologies Transocean Weatherford Total Participants / Interested Parties = c80 Last Updated Date: November 2013 PIDX, Inc. 2012

15 KPI Data Dictionary Contributing Companies & Organisations & Desired State KPIs Submitted to Date Already Submitted KPI s Afren BP Conoco Philips Halliburton Nexen OSHA Actian PICS Wintershall Hackett Group Sasol Statoil Wintershall Update as at Sept December Followups Apache Aker Solutions Anadarko Amec Baker Hughes Chevron Cameron GE Oil & Gas EP Energy Hess Marathon Oceaneering Pacific Drilling Schlumberger Transocean Weatherford Wintershall And as many more contributors as we can get. Total Participants / Interested Parties = circa 80 Last Updated Date: December 2013 PIDX, Inc. 2012

16 Future Meetings / Deliverables Schedule (Next 6 Mths) Meetings 2013 Q4 - Houston Meeting Sept 13th 2013 Location Schlumberger, Houston Q4- London Meeting Oct 17th 2013 Q3 / Q4 Continue to Map New KPI s as and when recieved from participant Companies Continue to Map New KPI s as and when recieved from participant Companies. Q1 / Q2 Meeting Locations to be decided Supplier Performance Dictionary releases 2013 Q2 / Q3- Populate Supplier KPI Dictionary Alpha Version 1.08 to 1.12 Q4 October - Draft Supplier Performance KPI Dictionary BETA V1 Q4 December Ver 1- Supplier KPI Dictionary 2014 Q Ver 2- Supplier KPI Dictionary PIDX, Inc. 2011

17 Success PIDX Standard for Automated Transmission of KPI Data between Suppliers and Operators Service Co 1 Service Co 2 Service Co 3 Operator 1 Operator 4 Operator 3 Clients SPM Operator 1 KPI Data Inputs Service Co 3 CRM Operator 2 SPM 70 KPI Data Inputs 26 Data Inputs Internal DB s Service Co 1 Service Co 2 Service Co Data Inputs

18 12 Point Plan

19 12 Point Plan ( Q1-Q2 2014) 1. Project Update to All Participants Jan 16 th Update, KPIs for Standardisation 2. Project Plan 2. Marketing for Supplier KPI Feb Meeting Jan 20 th Apoint VC Europe Jan 21 st Announce VC Europe Jan 28 th PSCM Conference (Ams) Jan 30 th Supplier KPI ebrochure Feb 2 nd Standardise KPIs (Feb 2014 to June 2014) 8. Houston Meeting Feb 20 th Colate feedback from Houston Meeting Feb 23 rd Publish Houston Meeting Minutes Feb 30 th Marketing for Remaining 2014 Meetings Mar 3 rd Publish Standardised KPIs V1 (to date) May 2014 PIDX, Inc. 2011

20 Marketing

21 Marketing Plan for Supplier KPI 1. PIDX Conferences Houston April 2014, London May 2014, 2. Adhoc Meetings Houston February 2014 London March Direct Calls & meetings with Interested Parties 4. Oil & Gas Supply Chain Conferences 5. PIDX Website 6. Linkedin 7. Other Publications (Digital Energy, Oil IT) 8. Educate PIDX Country Reps 9. PIDX Supplier KPI - Ebrochure (2 Pager) 10. Presentation on Slideshare PIDX, Inc. 2011

22 Assistance Required

23 Challenges / Assistance Required 1. Registered Participation from more Suppliers possibly we could leverage some contacts in (OFS-Members) 2. Meeting Sponsorship Houston Feb 2014 London May KPI Documentation / Repository 4. Financial / Travel Costs / Project Exposure Third Party Conferences 3 Per $2000 each example : 5. Costs - Consultants (Hackett )? 6. IACCM Membership (36000 Members 20% Oil & Gas Help Market the Project through IACCM Surveys, Webinars etc Cost Membership $3500 PA PIDX, Inc. 2011